What is the most likely impact on return on assets of a decrease in PP&E turnover, all else equal? - no change - increase - decrease
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What is the most likely impact on return on assets of a decrease in PP&E turnover, all else equal?
- no change
- increase
- decrease
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- Assuming no changes in other variables, which of the following would decrease ROA? C . An increase in average assets.Which of the following statements is true? a. The fixed asset turnover ratio assists managers in determining the estimated future capital expenditures that are needed. b. The average age of the fixed assets is computed by dividing accumulated depreciation by depreciation expense. c. If net sales increases, the fixed asset turnover ratio will decrease. d. A relatively low fixed asset turnover ratio signals that a company is efficiently using its assets.For financial accounting purposes, depreciation expense represents the decreasein an asset's fair market value. Select one: True False The total amount of depreciation taken over the life of a depreciable asset should be less if the double-declining balance depreciation method is used than if the straight-line method is used. Select one: True False
- Which of the following are inversely related to increases in a firm's current assets?I. Reorder costsII. Shortage costsIII. Restocking costsIV. Carrying costsWhich of the following transactions would not increase the fixed asset turnover ratio? Group of answer choices A)An increase in sales revenue. B)A profitable sale of fixed assets for cash. c)Selling manufacturing equipment for a loss. d)A decrease in operating expenses. E)All of the above would increase the fixed asset turnover ratioWhich of the following scenarios can increase the return on assets? a. Increase the current and quick ratio b. Increase the profit margin, other things equal c. Other things equal, increase the amount of assets used d. Other thing equal, decrease the turnover of assets
- Which of the following is not an asset utilization ratio? Group of answer choices... a. Return on assets b. Average collection period c. Fixed asset turnover d.Inventory turnoverWhich of the following is correct about "Cost", "Expense", and "Loss" concepts? Select one: a. Expense is defined as reduction in firm's equity, other than from withdrawals of capital for which no compensating value has been received. b. Cost is the total of expense and loss. c. Expense is defined as an expired cost resulting from a productive usage of an asset. d. Loss is defined as an expired cost resulting from a productive usage of a non-current asset.What have been the possible reasons for the changes in ROEs ? •Decompose the (Return on Equity) ROE into the main components: ROA and EM •Analyse the sources of Return on Asset (ROA) : Asset Utilisation and Profit Margin ratios. (PM) •Identify the sources of the changes in AU and PM
- Record the entry to adjust asset values to fair value. Record the entry to reduce additional paid in capital balance to correct figure, to close out gain account, and to eliminate deficit. How do I do this? What part of this is the adjust asset value and what part is the deficit entryWhen might a reduction in operating expense as a percentage of sale denote a short term gain or the cost of long term performance?Depreciation is generated due to a. Increase in the value of liability Ob. Decrease in capital C.Wear and tear Od. Decrease in the value of assets